The core idea behind combining strong growth with a technical breakout setup is that you're looking for confirmation from both the business and the market. A company can have fantastic earnings growth, but if the chart shows a downtrend or high volatility, the timing might be wrong. Conversely, a stock can have a beautiful chart, but without fundamental backing, the breakout can easily fade. The screening approach that selected Dynatrace Inc. (NYSE:DT) targets the intersection of these two conditions: companies with accelerating fundamentals that are also setting up for a potential technical move.
A Look at the Fundamentals
The core of the strategy begins with verifying that the business is actually expanding. Looking at the fundamental analysis report for DT, the numbers are clear. The company earns a strong ChartMill Growth Rating of 8 out of 10, driven by impressive historical performance.
- Earnings Per Share (EPS): Grew by 22.14% in the last year, with a five-year average annual growth rate of 22.10%.
- Revenue: Increased by 18.82% in the last year, backed by a five-year average of 23.47%.
- Future Outlook: Analysts expect EPS to grow by another 15.82% and revenue by 12.99% annually over the next few years.
This level of top and bottom-line expansion is what defines a genuine growth stock. It's not just a narrative; the company is consistently delivering on the fundamentals that matter most. This growth is backed by a solid financial structure. The company carries zero debt, which is a significant advantage, especially when you consider the potential for higher interest rates. The ChartMill Health Rating sits at 7, supported by an Altman-Z score of 5.25, indicating strong financial stability and low bankruptcy risk.
The Technical Setup
Strong fundamentals tell you what to buy, but the technicals help with the when. The technical analysis report shows a stock that scores an 8 out of 10, with a setup rating of 7. The key elements here are the trend and the pattern.
Both the short-term and long-term trends for DT are positive. The stock has been consolidating recently, which has reduced volatility—a classic pre-breakout behavior. The report identifies a resistance zone between $44.74 and $46.04. With the stock currently trading near the high of its recent range, a clear move above this resistance on rising volume would signal a strong entry point. The analysis suggests a potential buy stop order at $46.05, with a stop loss at $43.14 to manage risk. A positive setup like this, combined with the strong growth profile, is exactly what this screening method is designed to find.
Why This Combination Matters
This isn't about buying any stock that is going up. It's about finding businesses that are measurably expanding. A company with high debt can see its growth story collapse when financing costs rise, but DT's debt-free balance sheet protects it from that risk. The high gross margin of 81.56% further demonstrates pricing power and operational efficiency. The growth is real, the business is healthy, and the chart is aligning to provide a potential entry.
You can find more stocks with the same strong-growth and technical setup combination using this Stock Screener. The screen filters for companies with excellent growth rates, decent profitability and health ratings, and a good technical setup score, providing a starting point for further research.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All trading involves risk. Please conduct your own research before making any investment decisions.
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Dynatrace (NYSE:DT): Strong Growth Stock With a Promising Technical Breakout Setup
The core idea behind combining strong growth with a technical breakout setup is that you're looking for confirmation from both the business and the market. A company can have fantastic earnings growth, but if the chart shows a downtrend or high volatility, the timing might be wrong. Conversely, a stock can have a beautiful chart, but without fundamental backing, the breakout can easily fade. The screening approach that selected Dynatrace Inc. (NYSE:DT) targets the intersection of these two conditions: companies with accelerating fundamentals that are also setting up for a potential technical move.
A Look at the Fundamentals
The core of the strategy begins with verifying that the business is actually expanding. Looking at the fundamental analysis report for DT, the numbers are clear. The company earns a strong ChartMill Growth Rating of 8 out of 10, driven by impressive historical performance.
This level of top and bottom-line expansion is what defines a genuine growth stock. It's not just a narrative; the company is consistently delivering on the fundamentals that matter most. This growth is backed by a solid financial structure. The company carries zero debt, which is a significant advantage, especially when you consider the potential for higher interest rates. The ChartMill Health Rating sits at 7, supported by an Altman-Z score of 5.25, indicating strong financial stability and low bankruptcy risk.
The Technical Setup
Strong fundamentals tell you what to buy, but the technicals help with the when. The technical analysis report shows a stock that scores an 8 out of 10, with a setup rating of 7. The key elements here are the trend and the pattern.
Both the short-term and long-term trends for DT are positive. The stock has been consolidating recently, which has reduced volatility—a classic pre-breakout behavior. The report identifies a resistance zone between $44.74 and $46.04. With the stock currently trading near the high of its recent range, a clear move above this resistance on rising volume would signal a strong entry point. The analysis suggests a potential buy stop order at $46.05, with a stop loss at $43.14 to manage risk. A positive setup like this, combined with the strong growth profile, is exactly what this screening method is designed to find.
Why This Combination Matters
This isn't about buying any stock that is going up. It's about finding businesses that are measurably expanding. A company with high debt can see its growth story collapse when financing costs rise, but DT's debt-free balance sheet protects it from that risk. The high gross margin of 81.56% further demonstrates pricing power and operational efficiency. The growth is real, the business is healthy, and the chart is aligning to provide a potential entry.
You can find more stocks with the same strong-growth and technical setup combination using this Stock Screener. The screen filters for companies with excellent growth rates, decent profitability and health ratings, and a good technical setup score, providing a starting point for further research.
Disclaimer: This article is for informational and educational purposes only and does not constitute investment advice. All trading involves risk. Please conduct your own research before making any investment decisions.
Read full article here »